Dubai’s hotel room supply could see an increase of almost 20 percent between 2011 and 2013 as the city gradually rebounds from the credit crunch era’s tourism slump, according to the latest report from Jones Lang LaSalle (JLL).

The property advisory firm has estimated that an additional 1,900 rooms will be delivered towards the fourth quarter of 2011, bringing the city’s total hotel supply to around 54,700 rooms. Over the next two years, the stock is forecasted to expand to 65,400 following the anticipated entry of 5,200 and 5,500 rooms in 2012 and 2013, respectively.

JLL said the improved tourist arrivals in Dubai have supported the hotel sector’s favourable performance during the past couple of years. The emirate saw a 10-percent hike in inbound tourist traffic last year and the double-digit growth is projected to continue in the near-term period.

“During 2011, Dubai has experienced heavy visitation in the wake of the socio-political uncertainties that has made such destinations as Egypt and Lebanon less attractive. With the increase in visitor levels, occupancies are expected to experience a further increase in certain sub-markets over the remainder of 2011,” the company said.

Hotel occupancy rates in Dubai – home to colossal shopping malls and the world’s tallest tower – have improved to 78 percent this year from 72 percent in 2010, according to data from STR Global.

Dubai had not been immune to the recent credit crunch with average room rates plunging by nearly 25 percent in 2009 after reaching a high of $310 in 2008, JLL mentioned in its report.

“The decrease in rates continued during 2010, however the rate of reduction slowed down to 8 percent reaching $215. The YTD July 2011 data reflects a stabilisation in average rates at the same levels registered in 2010. As a result, the first seven months of 2011 have experienced a six percent increase in RevPAR [revenue per available room] across the city,” the company explained.

Opportunities still abound in the mid-market and budget hotel segment in the emirate as majority or about 60 percent of the current supply represent the 4- and 5-star category, according to the report.